El Salvador Holds Over $340 Million in BTC After 665 Days of Daily Bitcoin Buying

El Salvador, the first nation to recognize Bitcoin as legal tender, continues to accumulate 1 BTC daily, irrespective of the cryptocurrency’s price fluctuations.

Spot On Chain, an on-chain analysis service on the microblogging platform X (previously known as Twitter), was the first to report that El Salvador has been buying Bitcoin every day for 665 days, increasing their holdings to 5,871 coins valued at $341 million. The average price of 3,046 BTC purchased was $43,888.

Bitcoin is currently trading at approximately $58,200, having rebounded from a sell-off that occurred earlier this month, during which it dropped from over $64,000 to a low of under $53,000. In April, the cryptocurrency experienced its halving event, which resulted in a 50% reduction in the coinbase reward that miners typically receive per block discovered.

The Bitcoin website of El Salvador indicates that the nation has been gradually increasing its Bitcoin holdings.

El Salvador is a small country, spanning an area of approximately 21,041 square kilometers (8,124 square miles). This makes it the smallest country in mainland Central America, with a territory that is roughly equivalent to the U.S. state of New Jersey.

Following its adoption in 2001, the U.S. dollar has become the official currency of the developing economy, which is currently transitioning from a dependence on agriculture to a greater emphasis on manufacturing and services. In 2021, President Nayib Bukele took the initiative to modernize the country’s financial system and attract investment by declaring Bitcoin “legal tender.”

In December 2023, El Salvador enacted a law that grants expedited citizenship to foreign nationals who contribute Bitcoin to government social and economic programs. The purpose of this initiative is to attract foreign investment and promote economic development.

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